Alcoholic Drinks

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Alcoholic Drinks in Vietnam

Oct 2014|Pages: 73

Price: US$1,900

About this Report

EXECUTIVE SUMMARY

Alcoholic drinks experiences positive performance

Overall, alcoholic drinks experienced faster total volume growth rate in 2013 compared to 2012. All major categories – namely beer, wine and spirits – experienced improved performance against 2012. It is thanks to the higher influence of Western culture in the country as well as rising number of bars/pubs in big cities. On the contrary, cider and RTDs consumption remained negligible in Vietnam in 2013 as the majority of Vietnamese consumers are not knowledgeable about various international alcoholic drinks enough to be willing to try such novel drinks.

Marketing campaigns revolve around football events

As the target customers of most alcoholic drinks products in Vietnam are males, major marketing campaigns try to capture their favourite interests. Consequently, football games are amongst the most popular marketing channels. Many local players such as Saigon Alcohol Beer & Beverages Corp (Sabeco) organised their own national football competitions. In addition, the market saw the sponsorships from international brands such as Heineken, Foster’s and Budweiser for the most prestigious football leagues such as SEA Games 2013. In addition, Sapporo, a new beer player that has just penetrated the Vietnamese market since 2010, made an outstanding impression by getting Cong Vinh, a famous football player, to play for its Consadole Sapporo team.

International brands enhance their presence

In 2013, international players were involved in expanding their distribution networks as well as marketing and advertising activities (only for beer) to introduce their products to consumers. For example, Diageo Plc tried to establish its stronger presence in traditional channels, particularly food/drink/tobacco specialist retailers, to reach more consumers. However, local major players continued to dominate alcoholic drinks in 2013. Local players such as Saigon Alcohol Beer & Beverages Corp (Sabeco) and Hanoi Alcohol Beer & Beverages Corp (Habeco) invested heavily in production facilities to meet international standards, whilst trying to keep their prices at affordable levels in order to compete with international players.

On-trade remains the most popular distribution channel

With higher disposable incomes and busier lifestyles, consumers developed a habit of eating outside the home with family and friends over the weekends or after the workday. This trend provided a boost to alcoholic drinks as Vietnamese increasingly preferred socialising in restaurants, where beer is widely consumed. Wine and spirits, on the other hand, are consumed mainly in hotels, restaurants, bars, clubs, nightclubs, parties and events attended by more affluent consumers who are willing to pay for luxury drinks.

A positive outlook on the horizon

It is expected that alcoholic drinks in Vietnam will continue to grow strongly over the forecast period. Vietnam, with a young population and an increasing number of working-class consumers, is expected to see growing demand for alcoholic drinks over the forecast period. Moreover, there will be a shift towards more premium products over the years. There will be premium products introduced in beer, wine and spirits to replace low-end products, as there is a tendency amongst consumers to prefer premium products as an indication of their knowledge of alcoholic drinks and social status.